Food ministry plans special Act to promote sector

The Union ministry for food processing industries is going to formulate a special act to promote the sector.

Subodh Kant Sahai, minister for state (independent charge) food processing industry, said the Process Food Development Act (PFDA) would do away multiplicity of laws and facilitate investment.

"This act would not be regulatory but developmental in nature," the minister said addressing an interactive session with Indian Chamber of Commerce (ICC).

He also pointed out that the mandi act is a hurdle for growth of this industry. "I am working on it. We are taking views of various state government on this issue," he added.

The minister informed that it plans to set up task force at the central and state levels to look into various issues of the food processing industry. "In my opinion, it has not taken off as yet. But we are trying create an environment where more investments pour in," Sahai pointed out.

Industry raised the issue of delayed payment of grant for civil and technical works for setting up new units. The minister announced that all 700 backlog application would be cleared by end of this year. The ministry has a kitty of Rs 110 crore for such allocation.

Sahai also lobbed the idea of setting up at 500 food parks in the country which could entail investment of no less than Rs 10,000 crore.

Even though the industry is yet to take off nationally, West Bengal seemed to have progressed fairly. State minister Sailen Sarkar said his department has approved 155 proposals with investment of Rs 327 crore.